Question 1

Bumble Beasley, a recent accounting graduate from a private, for-profit university, started his own accounting consulting firm.His web page discussed internal controls, inputs, processes and outputs in relation to the design and implementation of accounting information systems.Should his web page be considered a good source of information about the generic structure of AIS?
A)Yes.Because he has a college degree, he has authority.
B)Yes.Because he is a recent graduate, the information is current.
C)No.Since his degree is from a private, for-profit university, he cannot be objective.
D)No.He is in violation of at least one of the UMUC criteria for evaluating information.

Accepted Answer

Bumble Beasley's web page may not be considered a reliable source of information about the generic structure of AIS because he violates at least one of the UMUC criteria for evaluating information, such as authority, accuracy, objectivity, currency or coverage.

Question 2

Ahmed was writing a paper summarizing three processes common in most organizations; his specific focus was on for-profit manufacturing organizations.In terms of the UMUC criteria for information evaluation, Ahmed's paper is most likely to violate:
A)Coverage, because it discusses only three processes.
B)Currency, because it does not focus on dollar amounts.
C)Authority, because Ahmed has no authority to write such a paper.
D)Relevance, because it focuses on for-profit manufacturing organizations.

Accepted Answer

The paper is most likely to violate the coverage criteria because it only focuses on three processes in for-profit manufacturing organizations.

Question 3

Studying AIS helps students understand business processes from an accounting perspective.Which of the following activities would commonly be associated with the financing process?
A)Selling goods and services on credit
B)Issuing equity securities
C)Making payments to vendors
D)Hiring employees to work in the finance department

Accepted Answer

Issuing equity securities is a common activity associated with the financing process. This involves selling ownership in the company to investors in exchange for funds. Selling goods and services on credit is a part of the revenue process, making payments to vendors is a part of the purchasing process, and hiring employees is a part of the human resources process.

Question 4

An accounting information system comprises five generic parts.Which of the following gives an example of an internal control associated with the sales/collection process?
A)Depositing cash in the bank daily
B)Adequately supervising employees who handle inventory
C)Both depositing cash in the bank daily and adequately supervising employees who handle inventory
D)Neither depositing cash in the bank daily nor adequately supervising employees who handle inventory

Accepted Answer

Depositing cash in the bank daily is an internal control associated with cash receipts and collections, which is a sub-process of the sales/collection process. Adequately supervising employees who handle inventory is an internal control associated with the inventory management process and is not directly related to the sales/collection process. Therefore, option C is the correct answer as it includes both controls.

Question 5

Accounting information systems has links with other areas of accounting study, including financial accounting.Which of the following combines an example of an AIS output with information you would expect to find in the output?
A)Income statement, net sales broken down by product line
B)Journal entries, accounts to debit and credit
C)Balance sheet, listing of current asset accounts with their balances
D)All of these

Accepted Answer

The answer of Accounting information systems has links with other...

Question 6

Accounting information systems has links with other areas of accounting study, including financial accounting.Which of the following combines an example of AIS storage with information you would expect to find in it?
A)Balance sheet, listing of current asset accounts with their balances
B)Master file, customer address
C)Both balance sheet, listing of current asset accounts with their balances and master file, customer address
D)Neither balance sheet, listing of current asset accounts with their balances nor master file, customer address

Accepted Answer

The answer of Accounting information systems has links with other...

Question 7

Information literacy is the ability to ___ information in all of its various formats.
A)Find and evaluate
B)Use and communicate
C)Find, evaluate, use and communicate
D)Use and evaluate

Accepted Answer

Information literacy includes the ability to find, evaluate, use, and communicate information in all of its various formats. While finding and evaluating information is important, being able to use and communicate that information effectively is equally essential. Therefore, option C is the best choice.

Question 8

A consulting company summarized the key provisions of the Sarbanes-Oxley Act in a half-page flyer, which was then mailed to prospective clients.The flyer contained the name of the consulting company, but did not identify any of its employees by name.In addition to objectivity, the flyer is most likely in violation of which UMUC criterion for information evaluation?
A)Authority
B)Accuracy
C)Currency
D)Coverage

Accepted Answer

The answer of A consulting company summarized the key provisions...

Question 9

Which of the following best summarizes "authority," as the term is used in information evaluation?
A)Only people with college degrees have true authority to publish.
B)An author cannot evaluate information.
C)The author's credentials should be described as clearly and completely as possible.
D)The more authors a paper has, the more authoritative it is.

Accepted Answer

"Authority" in information evaluation refers to the credibility of the author or source. Describing the author's credentials clearly and completely helps establish their authority on the subject matter. This can include their education, professional experience, and any relevant qualifications. The other options (A, B, D) are incorrect as they do not accurately reflect the concept of authority in information evaluation.

Question 10

UMUC identified several criteria for evaluating information.Which of the following statements is most true?
A)Any piece of information that does not meet all five should be ignored.
B)Meeting any three of the five criteria indicates that information must be considered.
C)Authority and accuracy are more important than the other criteria.
D)The importance of each category depends upon the source and intended use of the information.

Accepted Answer

The criteria for evaluating information vary depending on the source and intended use. Therefore, the importance of each category should be evaluated in context rather than using a one-size-fits-all approach. While authority and accuracy are important, other factors such as relevance, currency, and objectivity may be more or less relevant depending on the situation. It is also not necessary for a piece of information to meet all five criteria to be considered useful; rather, the criteria provide a framework for evaluating the strengths and weaknesses of information sources.

Question 11

Studying AIS helps students understand business processes from an accounting perspective.Which of the following general ledger accounts would be unique to a company with a conversion process?
A)Work in process
B)Inventory
C)Supplies
D)Payroll expense

Accepted Answer

Work in process is a general ledger account specific to companies with a conversion process, as it represents the cost of partially completed products in the manufacturing process. Inventory and supplies are common to most companies, while payroll expense represents employee compensation and is not unique to companies with a conversion process.

Question 12

Gloria wrote a paper on the AICPA core competencies for her accounting information systems class.She organized the paper in three main parts: broad business perspective competencies, functional competencies, conceptual framework competencies.In terms of the UMUC criteria for information evaluation, which of the following statements is most true?
A)Gloria must add at least one section for the paper to have sufficient coverage.
B)Gloria must add one section and delete one section for the paper to have sufficient coverage.
C)Unless the paper is published within six months, it will not be current.
D)The section on conceptual framework competencies must discuss all elements of the conceptual framework.

Accepted Answer

The answer of Gloria wrote a paper on the AICPA...

Question 13

Which of the following best explains the idea of "currency," as the term is used in evaluating information?
A)Information more than five years old should never be used.
B)Financial information is always more accurate than nonfinancial information.
C)Authors without a current college degree have no authority to publish.
D)Users should consider the relationship between the subject and the publication date.

Accepted Answer

The concept of "currency" in evaluating information refers to considering the relationship between the subject and the publication date. This means that information that is more recent may be more relevant and accurate than older information, but it also depends on the subject and context in which the information is being used. Therefore, option D is the best choice as it accurately explains the idea of currency. Option A is incorrect as there may be situations where information older than five years can still be relevant and accurate. Option B is also incorrect as financial information is not always more accurate than nonfinancial information. Option C is irrelevant to the concept of currency and authority in publishing.

Question 14

The AICPA Core Competency framework comprises three parts.All of the following competencies belong to the same part except:
A)Problem solving
B)Decision making
C)Communication
D)Research

Accepted Answer

The AICPA Core Competency framework comprises three parts: Personal Effectiveness, Interpersonal Effectiveness, and Professional Skills and Knowledge. Problem solving, decision making, communication, and research all belong to the Professional Skills and Knowledge part, except for research which falls under the Personal Effectiveness part.

Question 15

An accounting information system comprises five generic parts.Which of the following gives an example of an internal control associated with the financing process?
A)Maintaining a good credit rating to facilitate the issuance of bonds and other debt securities.
B)Evaluating employees in the finance department on a quarterly basis.
C)Both maintaining a good credit rating to facilitate the issuance of bonds and other debt securities and evaluating employees in the finance department on a quarterly basis.
D)Neither maintaining a good credit rating to facilitate the issuance of bonds and other debt securities nor evaluating employees in the finance department on a quarterly basis.

Accepted Answer

Maintaining a good credit rating is an internal control associated with the financing process because it helps to ensure that the company can obtain financing at favorable terms.

Question 16

Most accounting information systems comprise five parts.Which of the following must be used as a processing tool in the AIS?
A)Spreadsheets
B)Relational databases
C)Both spreadsheets and relational databases
D)Neither spreadsheets nor relational databases

Accepted Answer

The answer of Most accounting information systems comprise five parts.Which...

Question 17

The AICPA Core Competency framework comprises three parts.Which of the following best pairs a specific competency with the correct part?
A)Resource management, broad business perspective
B)Risk analysis, functional
C)Both resource management, broad business perspective and risk analysis, functional
D)Neither resource management, broad business perspective nor risk analysis, functional

Accepted Answer

Resource management is part of the broad business perspective, while risk analysis falls under the functional part of the AICPA Core Competency framework. Therefore, both choices A and B are incorrect, leaving only choice C as the correct answer. Choice D is clearly incorrect as it states that both competencies are not part of the framework.

Question 18

As a requirement of his AIS course, Ahmed was preparing a short paper on why AIS is an important area of study for future accountants.In terms of the UMUC information literacy criteria, which of the following statements is most true?
A)Ahmed has sufficient authority to write the paper; he does not need to consult outside sources.
B)To meet the accuracy criterion, he must discuss exactly three reasons.
C)By consulting at least five sources, Ahmed will be sure to meet the objectivity criterion.
D)His paper may have sufficient coverage if he discusses at least three reasons.

Accepted Answer

Option A is incorrect because while Ahmed has the authority to write his paper, he should consult outside sources to ensure he is accurately representing the topic. 
Option B is incorrect because the accuracy criterion does not specify a set number of reasons to be discussed. 
Option C is incorrect because the objectivity criterion is not solely based on the number of sources consulted. 
Option D is the best choice as it suggests that discussing at least three reasons may be sufficient to have adequate coverage of the topic. However, it is important to note that this may not necessarily meet all of the information literacy criteria, including accuracy and objectivity.

Question 19

JPS Corporation's accounting information system includes sales invoices, general ledger software, spreadsheets and customer files.JPS is careful to maintain adequate separation of duties as well.To provide one example of each generic element of the AIS, that list should replace ___ with ___.
A)Spreadsheets; operational budgets
B)Customer files; sales transaction files
C)General ledger software; satellites
D)Adequate separation of duties; regular AIS data backup

Accepted Answer

Spreadsheets are used for operational budgets, and customer files are used for sales transaction files.

Question 20

According to the University of Maryland's University College, information should be evaluated based on ___ criteria.
A)Two
B)Three
C)Four
D)Five
E)More than five

Accepted Answer

The University of Maryland's University College suggests that information should be evaluated based on five criteria: accuracy, authority, objectivity, currency, and coverage.

Quiz 2: Role and Purpose of Accounting Information Systems

Ahmed was writing a paper summarizing three processes common in most organizations; his specific focus was on for-profit manufacturing organizations.In terms of the UMUC criteria for information evaluation, Ahmed's paper is most likely to violate:

Studying AIS helps students understand business processes from an accounting perspective.Which of the following activities would commonly be associated with the financing process?

An accounting information system comprises five generic parts.Which of the following gives an example of an internal control associated with the sales/collection process?

Accounting information systems has links with other areas of accounting study, including financial accounting.Which of the following combines an example of an AIS output with information you would expect to find in the output?

Accounting information systems has links with other areas of accounting study, including financial accounting.Which of the following combines an example of AIS storage with information you would expect to find in it?

Information literacy is the ability to ___ information in all of its various formats.

Which of the following best summarizes "authority," as the term is used in information evaluation?

UMUC identified several criteria for evaluating information.Which of the following statements is most true?

Studying AIS helps students understand business processes from an accounting perspective.Which of the following general ledger accounts would be unique to a company with a conversion process?

Which of the following best explains the idea of "currency," as the term is used in evaluating information?

The AICPA Core Competency framework comprises three parts.All of the following competencies belong to the same part except:

An accounting information system comprises five generic parts.Which of the following gives an example of an internal control associated with the financing process?

Most accounting information systems comprise five parts.Which of the following must be used as a processing tool in the AIS?

The AICPA Core Competency framework comprises three parts.Which of the following best pairs a specific competency with the correct part?

As a requirement of his AIS course, Ahmed was preparing a short paper on why AIS is an important area of study for future accountants.In terms of the UMUC information literacy criteria, which of the following statements is most true?

JPS Corporation's accounting information system includes sales invoices, general ledger software, spreadsheets and customer files.JPS is careful to maintain adequate separation of duties as well.To provide one example of each generic element of the AIS, that list should replace _ with _.

According to the University of Maryland's University College, information should be evaluated based on ___ criteria.